Logistics case Essay

Stanley genuine multiple calls from nodes complaining about late shipments for both truck and vilify delays. Transportation delays were measured in days, non hours. Railcar deli truly windows increase from two to seven days, and overall truckload facilitate levels fell to less than 85 percent on date. Due to rise in price of the transference cost for subroutine the cost of goods sold rose from 11 to 19 percent. The dose problems led to a demand by lay outs largest domestic customer. Stanley tells that even a 10 percent increase in stock-taking levels would reduce return on asset levels from 13.7 percent to 9.1 percent. MAPs schedule investment is 22 percent of total assets and inventory carrying be argon nearing 27 percent of inventory prize, both of which argon consistent with manu detailuring industry norms. The outbound logistics is an essential primary activity of the value chain no matter what industry. interrogation 2Agricultural commodities and products from th e middle west are shipped to locations around the globe. If global demand continues to mformer(a), how will different transportation modes (rail, truck and barge) be affected? How will these changes impact MAPs current tack on chain strategies? AnswerIf the global demand continues to grow then there will be a tough time for the agriculture products which is being shipped from the middle west to all locations around the globe as if there is a rise in demand then be related with the different means of transportation will increase and the service levels will most likely fall, main(prenominal)ly with tape drive the goods through body of water ways as demand for containers are increased, the fuel costs are higher and even collectable to slow steaming.The single railcar shipping rates are as closely as truckload shipments which will target to decline in on-time transportation service which will cause customer dis-satisfaction. MAPs service levels fell to less than 85% on time a nd the domestic customer demand is increased and there are complaints from customers all over the globe regarding the delay in receiving their product due to the deregulation in transportation which will lead to a damaging effect on its current supply chain, MAP should place supplier-owned inventory in nearby storage facility or by perspective warehouses around the globe if not will lose 100% of its business. interrogate 3Many factors influence location decisions. If MAP were to relocate a facility today, what factors would seem most important? Do MAPs past location decisions limit or enable their future opportunities? Would your make change if MAP was a large multi-national corporation? AnswerIf MAP were to relocate to any other place, two points should be kept in mind- Firstly, to relocate to areas where resources are in abundant as its the main source for their business. Secondly, transportation should be much easier and should be reachable to versatile areas. Distance from both suppliers and customers are important as when it comes to the susceptibility of an operation suppliers are involved and delivery of goods to customers or key foundation is just as important. Its better off if MAP does not relocate its facilities because in its current location in the Midwest it offers an copiousness of feed and soyabean suppliers which is the main source of MAPs business. Since transportation is the main problem for MAP, but after Marys talk with various other Midwest shippers to better utilize the existing transportation floor it looks like a bright future ahead. I believe a large organization would choose to locate in a connatural fashion, but would also strive to choose a location with informal access to rail and highways.Question 4Manly Terminal LLC successfully enables modal shifts from truck to rail transportation, and specifically to unit-train pricing, for ethanol shippers producing single shipload shipment sizes. What prevents MAP from realizi ng these same rate advantages? Can these challenges be cut across? How? AnswerMap is unable to realize these same advantages for a fewer reasons Poor model optimization. MAP is not located near a major national and international railroad hub. They are in fact only shipping single carloads, but an individual car costs a fair amount more when we are not speaking about a until-train. With the right partnership, I believe those problems could be overcome.Question 5Manly Terminal LLC offers the ethanol industry exciting supply chain solutions. Are the ethanol industrys transportation necessitate similar to any other sectors? Could Manly Terminal expand to serve other industries? Which sectors should they target? AnswerThe requirements for shipping ethanol sound very similar to what we believe it would take to ship corn syrup or soybean oil. Manly could service almost any liquid mickle product.Manly terminal are already located in the Midwest servicing corn refineries for ethanol. Th ey can also service the corn refineries for other by-products to make corn sweeteners, refined corn feed products, starch, corn oil, ethanol and other bio-products. Manly terminal can target the sectors or industries who ship grains, biofuels/bioenergy and products involved in trans loading.